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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 122] NEW DELHI, MONDAY, JUNE 30, 1975/ASADHA 9, 1897

Separate paging is given to this Part in order that it may be filed

as a separate compilation

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATIONS

New Delhi, the 30th June 1975

No. F.16(l)-PD75.—The Government of India have introduced a Special Deposit Scheme for the benefit of non-Government provident, superannuation and gratuity funds. The scheme shall come into force from 1st of July 1975.

2. Eligibility.—The following categories of funds, hereafter referred to as eligible funds, will be permitted to invest, to the extent laid down in paragraph 3 below, their current accretions, that is to say, moneys contributed or received to the credit of the eligible funds on transfer, maturity or realisation of any security or deposit belonging to the funds including interest earned thereon and sundry receipts, as reduced by obligatory outgoings therefrom:

(1) provident funds established under the Employees Provident Funds and Family Pension Fund Act, 1952 (19 of 1952)—both of exempted establishments administered by the Boards of Trustees of those funds and the Employees Provident Fund of un-exempted establishments administered by the Central Board of Trustees through the Central Provident Fund Commissioner.

(ii) provident funds recognised by the Commissioner of Income-tax in accordance with the rules contained in Part A of the Fourth Schedule

(779)

to the Income-tax Act, 1961 (43 of 1961) and superannuation and gratuity funds approved under rules contained in Part B or Part C, as the case may be, of the Fourth Schedule to the Income-Tax Act, 1961.

(iii) non-Government provident funds to which the Provident Funds Act, 1025 (19 of 1925) applies or which are established by any other Central Act and whose moneys are invested in accordance with the scheme laid down in the Notification of the Government of India in the Ministry of Finance, Department of Economic Affairs No. F.12(7)-PD/71, dated the 29th October, 1974 read with Notification No. F.12(14)-PD/75, dated the 30th June, 1975.

3. Limit on Investments.'—The aforesaid eligible funds may Invest upto twenty per cent of their monthly accretions, as defined earlier, in the form of interest bearing deposits under the Special Deposit Scheme, If investment by an eligible fund in a month is less than the prescribed limit, for whatever reason, the fund will be eligible to make up that short investment in the following month. Invest- ments In all cases shall be in multiples of Rs. 100 in cash or by cheque or bank draft drawn in favour of one of the deposit offices mentioned in paragraph 4 below.

4. Deposit Offices.—Deposits will be accepted at:

(i) offices of the Reserve Bank of India at Ahmedabad, Bangalore, Bombay, Calcutta, Hyderabad, Kanpur, Madras, Nagpur, New Delhi and Patna; and

(ii) all branches of the State Bank of India, subsidiaries of the State Bank of India and the corresponding new banks constituted by the Bank- ing Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970).

5. Applications for opening an account may be made at any of the deposit offices mentioned in paragraph 4 above by the authority controlling the eligible fund in Form A together with a challan in Form B, in duplicate, for the amount of the initial deposit. Subsequent deposits will be made at the same deposit office along with the challan in Form B.

6. Interest.—Interest will be allowed on the summations of monthly balances of the deposits at the rate of 10 per cent per annum. For this purpose, the minimum balance between the tenth and the last date of the month shall be taken into account. Interest will be paid on the 31st December each year, pro- vided that in case of refunds of a deposit before the termination of the Scheme, stipulated in paragraph 9 below or on termination of the Scheme, stipulated In paragraph 10 below, Interest for any remaining period will be paid along with the amount of the deposit;

Provided however, the rate of Interest specified above is liable to be changed and may be altered by the Central Government at any time without previous notice, if, in the opinion of the Government of India, such a modification becomes necessary. Any alteration in the rate of interest will, however, be applicable proapectively as from the date or dates to be announced by the Central Govern- ment in this behalf.

7. Payment of interest will be made by the deposit office by means of a cheque or payment order marked "Account Payee only", drawn in favour of the authority administering the eligible fund.

8. Interest on deposits will be free of income-tax under the Income-tax Act, 1961.

9. Refund of deposits.—Refund of deposits, before their repayment becomes due as per paragraph 11 below, will be allowed, on application, made in this behalf, by the trustees or administrator of an eligible fund to the deposit office at yvhich the deposit is held, in the event of—

(a) the winding up of the related establishment followed by the disposal and realisation of the fund's investments for settlement of the claims on the fund by the employees; or

(b) obligatory payments by an eligible fund in any month exceeding the

accretions to the fund. in. that mqnth,

Refunds will be permitted to the extent of the amount standing tq the credit of the eligible fund if it is being wound up or to the extent of the excess of the obligatory payments over the accretions to the fund, as the case may be.

10. Period of deposit.—The Scheme will remain in force till the 30th June, 1985 but may be continued for a further period till such later date as may be specified In this behalf by the Central Government. In the event of the extension of the, scheme beyond the period aforesaid, the eligible funds having deposit accounts under the scheme will have the option to claim repayment of the deposits or keep them Invested under the scheme:

Provided that the Central Government reserves to itself the right to terminate the scheme at its option after giving three months' notice, if at any time In the future this is considered necessary or desirable so to do In the public interest.

11. Repayment.—In the event of the amount standing to the credit of any eligible fund becoming repayable after the 30th June, 1985 or on the expiry of such extended period, if any, as may be announced in this behalf by the Central Government or on the expiry of the period of notice, the amount outstanding shall be repaid in five equal annual instalments starting from the date on which the repayment becomes due, interest being payable on the amounts outstanding from time to time thereafter at the rate and in the manner specified in para- graph 6.

12. Transferabillty.—Transfer of the deposit account from one deposit office to another deposit office will not be permissible, except in cases of;

(a) the grant or withdrawal of exemption to an establishment under the provisions of Employees Provident Funds and Family Pension Fund Act, 1952, or

(b) the reconstruction of an establishment or amalgamation with another establishment in circumstances necessitating the transfer of the entire fund balances to another fund maintained at another office of the same or another depositee bank. Applications for transfer in the aforesaid circumstances may be made by a fund to the deposit office which holds the deposit of that fund.

13. Pass Books.—Pass books will be issued by each deposit office to the authority administering an eligible fund for which an account has been opened by that office under the Scheme. The pass book will have to be presented when, ever any subsequent deposit is made. For collection of interest or refund of any portion or whole of the deposit, the pass book will be lodged with the deposit office a week In advance of the due date.

In the event of loss or destruction of a pass book issued by the deposit office, the deposit office may, on application made to it in this behalf and on payment of two rupees, issue a duplicate thereof.

14. Certificate of balances.—At the end of each financial year ending 31st March, each deposit office will furnish to the authority administering an eligible fund for which it holds a deposit, a certificate (in duplicate) of the balances at the credit of that fund at the end of the year. The authority administering the eligible fund will return one copy to the deposit office after verification, either accepting the entries in the statement or pointing out discrepancies, if any, In those entries for rectification, as the case may be.

15 The Scheme, which Is applicable only to eligible funds as defined in para- graph 2 above, is intended to enable the subscribers to these funds to get the benefit of higher interest rates on their subscription to these funds, having regard to the rates allowed on comparable funds which are directly administered by the Central and State Governments. Provision has been made for the administration of the Scheme in a decentralised manner through the agency of the commercial banks with which accounts are already being maintained by the trustees or aa- minlstrators of the funds concerned. Further details may be obtained from the deposit offices or any Regional Provident Fund Commissioner.

FORM A

Application for opening an account under the Special Deposit Scheme

To

(name of Deposit Office)

(Station)

Special Deposit Scheme—Opening of Account

* " * Provident/Superannuation/Gratuity Fund.

Dear Sir,

with B.8.

I/We, as the controlling authority of the undermentioned Fund, tender here- in teash/by cheque/bank draft as initial deposit (In words & figures)

for opening an account at your office/branch, under the Special Deposit Scheme:

1. Name of the Fund and address

2. Name of the Controlling authority, by designation.

J3. Code No. if any.

2. A copy of the Resolution of the Board of Trustees/Articles of Association relevant to the administration of the Fund is enclosed.

Yours faithfully,

Signature and Seal of Controlling

Authority of the Fund.

Station

Date

•Separate application should be made for each Fund. Delete whatever is not applicable,

fDelete whatever is not applicable.

^Allotted by the Central Provident Fund Commissioner or any other authority.

Acknowledgement

Received an application for opening of Special Deposit Account in the name of . r-along with an initial deposit of Rs. - -. ~ in cash/ (Fund's name)

by cheque/bank draft.

Date Stamp

Signature

Branch Manager

Seal

To be submitted, in duplicate

FORM B

CHALLAN CENTRAL

Spatial Deposit Scheme

Deposit made with

(Name of the Bank)

at

^Station)

Part I—(To be filled in by the remitter)

1. Name and designation of Trustee/ Administrator of eligible Fund :

2. Amount*

(in figures) Rs.

(in words) Rupees..,,

paid in cash

by cheque/Demand Draft No drawn on

*to be in multiples of rupees one hundred.

3. Head of Account: 812-Special Deposits Account— Special Deposits by provident, superannuation and gratuity funds.

4. tCertified that the amount tendered for deposit is within the prescribed limit for investment under the Special Deposit Scheme of Fund's accretions (Ra.—•—— —) during the month of — . >,

tCertifled that the amount tendered exceeds the prescribed limit for investment under the Special Deposit Scheme of Fund's accretion (Rs. ) during the month of — to the extent of short investment made in the previous month,

tDelete not applicable.

5. Signature of Authority administering the fund .

Seal

6. Paid by

(Name & Signature)

Part II—(To be filled in by the Deposit Office)

Received payment: Rupees

(in words)

in cash/by cheque/Demand Draft.

Date Stamp

Signature Branch Manager Seal

No. F.12(U)-PD/75.—In the Notification of the Government of India in the Ministry of Finance, Department of Economic Affairs No. F.12(7)-PD/71 dated the 29th October, 1974, the pattern of investment to be followed by provident funds, superannuation funds and gratuity funds, in order to be eUglbla to Invest moneys in Post Office Time Deposits, had been prescribed.

2. In so far as any non-Government provident fund to which the Provident Fund Act, 1925 (19 of 1925), applies or which is established by a Central Act, other than the Employees Provident Funds and Family Pension Fund Act, 1952 (19 of 1952), the investment pattern prescribed in the aforementioned notification shall, with effect from the 1st July, 1975, be substituted by the following:—

INVESTMENT PATTERN

(1) Government securities as defined In section 2 of the Public Debt Act, 1944 (18 of 1944) created and issued by the Central Government. Not les" than 23%.

(ii) Government securities as defined in section 2 of the Public Debt Act, 1944 (18 of 1944) created and issued by any State Government. Not less than t%

(iii) Any other negotiable securities/bonds, the principal whereof and Interest whereon is fully and un- conditionally guaranteed by the Central Govern- ment or any State Government. Not less than 20%,

(lv) 7-Year National Savings Certificates (Second Issue

& Third Issue) or Post Office Time Deposits. Not exceeding 30%.

(v) Special Deposit Scheme introduced bv notification of the Government of India in the Ministry of Finance. Department of Economic Affairs, No. F. 18(l)-PD/75, dated the 30th June, 1975. Not exceeding 20%.

At the time of making an investment in Post Office Time Deposits or under the Special Deposit Scheme, the authority administering the fund will furnish a certi- ficate to the Post Office or the deposit office, as the case may be, that the invest- ment pattern pre"ribed by the Government has been followed.

B. MAITHREYAN, Jt. Secy,

PRI" CE" BY THE nXNIRAl MANAGER, GOVERNMENT OF INDIA PRESS, MEUTO ROAD,

NEW DMJO AVD PXTHLieiUD BY THE CONTROLLER OF PUBLICATIONS, DELHI, 197C